Go to links

Saturday, July 25, 2009

This contraction is far from over

[D]espite the warm feelings and “green shoots” of summer, this contraction is far from over.

“I think this is really serious, and it’s just beginning,” Doug Casey said during his presentation yesterday. “Forget about the green shoots. They are weeds. This is the biggest thing since the Industrial Revolution. Stocks will be a good value when dividend yields are around 10%.

“Real estate? Way too early. Bonds? The bond market is much bigger than the stock market. Interest rates are being artificially depressed. They have to go back up to higher levels to encourage people to save and get out of debt. When interest rates assert themselves, the bond market will collapse, which isn’t good for the stock market, or real estate, either.”

So what’s Doug doing? Going long precious metals, shorting U.S. Treasuries and buying real estate in Thailand and Argentina.
-- from "Recession Forecasts, 8 Signs for When The Worst is Over, The Booming Loonie and More!" by Addison Wiggin and Ian Mathias


Post a Comment

Links to this post:

Create a Link

<< Home